DUSHANBE, June 25, 2008, Asia-Plus – The fourth session of the Majlisi Namoyandagon (Tajikistan’s lower chamber of parliament) of the third convocation considered and endorsed the 2008 monetary policy prognosis at a June 25 sitting, presided over by its chairman, Saydullo Khairulloyev.
Presenting the 2008 monetary policy prognosis, Sharif Rahimzoda, the head of the National Bank of Tajikistan (NBT), noted that the prognosis had been supposed to be submitted to parliament last October already but for some reasons delay had occurred and it had been submitted for consideration to the government only by spring.
On the specific direction of the monetary policy, Tajik central bank reminded that gross domestic product (GDP) last year amounted to 12.768 billion somonis, which was 7.8 percent more than in 2006. According to him, they expect GDP to rise 8 percent in the year to December 31, 2008, reaching 16.36 billion somonis.
Rahimzoda noted that inflation had stood at 19.7 by the end of 2007, and they expect inflation to stand at 15 percent by the end of this year. Inflation for January-Mary this year stood at 6.8 percent.
He said that world market trends will affect prices of goods on the domestic market in Tajikistan in the future as well. Last year, prices of some basic food products rose by 25 percent, prices of nonfoods rose by 7.5 percent, and paid services rendered to the population rose by 17 percent.
Tajik central bank head noted that exchange rate of the Somoni fell by 1.1 percent last year. Meanwhile, over the first five months of this year, an official exchange rate of local currency has increased by 1 percent and its market exchange rate has increased by 1.5 percent.
Rahimzoda stressed that among the main goals of the monetary policy for this year is to raise prestige of local currency – the Somoni. According to him, to achieve this goal it is necessary to provide loans in national currency and carry out all trade transactions in somoni.
“We are taking measures to provide loans in the national currency,” said the NBT head. “For this, we have reduced refinancing rate from 16% to 14.75%.” However, deposits in foreign currencies still account for 79 percent of the whole volume of deposits in the country, according to him.
He also noted that amendments to a number of the country’s financial laws will be made only after independent audit of activity of the National Bank.
Asked about measure to strengthen the national currency, Rahimzoda noted one of such moves could be exemption of incomes of physical and legal entities in the national currency from taxes.
